EconPapers    
Economics at your fingertips  
 

Venture capital internationalization in China and the Uppsala model

Paul L. Hudson, Jr. () and James Richardson
Additional contact information
Paul L. Hudson, Jr.: The University of Hawaii at Manoa
James Richardson: The University of Hawaii at Manoa

International Entrepreneurship and Management Journal, 2024, vol. 20, issue 3, No 7, 1757 pages

Abstract: Abstract We study the investment behavior of new domestic Chinese venture capital (VC) firms compared to foreign VC firms newly entering the Chinese market. Given the institutional and cultural differences or psychic distance between China and the home country of foreign VC’s, the Uppsala Model would predict that foreign VC’s will be more cautious initially than domestic Chinese VC’s and that the degree of caution will increase with the psychic distance. Our data comes primarily from Zero2IPO, which has a nearly exhaustive list of VC investments in China from 1996 to 2006. We also use country-of-origin, membership in GLOBE cultural clusters, and a broad measure of psychic distance based on institutional and cultural differences from Berry, Guillén, & Zhou (2010) and the Freedom Index to test this prediction. We find support for the hypothesis that psychic distance affects initial investment behavior.

Keywords: Venture capital; Internationalization; China; Uppsala model; Liability of foreignness; Psychic distance; Cultural distance; Institutional distance (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11365-024-00984-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:intemj:v:20:y:2024:i:3:d:10.1007_s11365-024-00984-4

Ordering information: This journal article can be ordered from
http://www.springer. ... urship/journal/11365

DOI: 10.1007/s11365-024-00984-4

Access Statistics for this article

International Entrepreneurship and Management Journal is currently edited by Salvador Roig

More articles in International Entrepreneurship and Management Journal from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-20
Handle: RePEc:spr:intemj:v:20:y:2024:i:3:d:10.1007_s11365-024-00984-4